The OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (the Guidelines) were initially introduced in 1995 as a solution proposed by the OECD Council to establish a reasonable framework for valuing transactions affecting multiple jurisdictions. These Guidelines aim to resolve disputes related to the allocation of profits across different territories. Since their approval, they have been expanded and updated periodically.
Although the Guidelines are considered soft law (meaning they are not directly transposed into domestic legislation), Spain’s Corporate Income Tax Law (Law 27/2014) states in its preamble that related-party transactions should be treated in accordance with the Guidelines, as long as they do not explicitly contradict Spanish transfer pricing regulations.
On January 20, 2022, the OECD published its latest edition of the Guidelines, incorporating several consolidated reports released since the previous 2017 version:
This new edition aims to consolidate previous reports while introducing additional changes to enhance clarity and consistency in the Guidelines' wording.
